What is the NASDAQ Index and How Can You Trade it?
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Here we discuss the Nasdaq index, aka the “technology” index, including some of the largest tech companies in the U.S. economy, as well as some multinationals from Europe and Asia.
So what exactly is the Nasdaq 100 index? The Nasdaq 100 is among the top American indexes as it has companies from what is currently the fastest rising sector in the world’s largest economy. The Nasdaq contains stocks and shares of companies like Amazon, Apple and Google.
Trading the Nasdaq will mean you gain exposure to 100 companies from the sector, unlike the Dow Jones which has only 30 companies in it and the S&P 500, which has, unsurprisingly 500. Although limited in the type of companies it consists of, learning how to trade the Nasdaq 100 can be a valuable asset for any trader, as the companies in it have been consistent performers ever since the dot-com bubble of 2000.
So if you do decide to trade Nasdaq, be wary of the risks that high-flying stocks might have (susceptible to regulatory changes, sharp declines). But if you believe that tech stocks will continue their ascension, then the Nasdaq 100 is the index for you.
So if you want to learn more about index trading and the Nasdaq index, watch this video and subscribe to our channel for regular updates about this US stock index.
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